Firstly, you have to know first what binary options are before going deeper about it. Binary option is a kind of option where the payoff or the return is either the amount of the capital/asset or nothing at all. It comes with two different types which are asset-or-nothing binary option and cash-or-nothing binary option. An example for the cash-or-nothing binary option is the kind of option wherein you are going to purchase a stock which amounts to $500 with a binary pay off or $5000. This kind of purchase will have a maturity date which can be considered a gamble because you will not know if the stock remains at the value of $500 or not. The value of stocks plays a great role because it will determine if you are going to take home the binary off or not. Binary pay off will only be given if the stock value remains at $500 or higher, otherwise you will get nothing.
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